Warranty and indemnity insurance benefits both sellers and buyers in corporate transactions. A policy indemnifies a party for financial losses that could arise out of a breach of warranty or indemnity in the purchase agreement. Sellers use it to limit their ongoing liabilities and prevent sale proceeds being held up in escrows, allowing them to exit deals cleanly. Buyers use it to make their bids more attractive to sellers and to protect the value of their investment once deals are done.
We work for buyers and sellers in corporate transactions, as well as for the firms that advise them. Our job is to make sure the parties in a transaction get the insurance coverage they need, first to make their deal happen, then to protect their interests in the future.
We can put together back-to-back cover for warranty liabilities given in the purchase agreement transferring the risks to the insurer. The insurer will either cover the buyer (a buyer-side policy) or agree to indemnify the seller (a seller-side policy). Our team also structure insurance solutions to cover known risks identified in due diligence including tax, legal and pension contingencies.
We’ll use our experience, influence and relationships with insurers to get you the best possible coverage. We’ll also:
- scrutinise your deal to understand it inside out and help you get a better understanding of the risks you face
- help you structure your agreement so it gets over the finish line and suggest changes to the structure or the wording to make it more acceptable
- think creatively about how to plug gaps in coverage, identify difficult risks and help you access other markets if you need
- look past the deal itself to help you understand your on-going operational risks and consider the full spectrum of your corporate risk
- help you cover known liabilities and put contingent risk insurance in place
We do more than just identify risks and help you insure them. We work alongside you to make your deal happen the way you want.
- W&I insurance
- Tax insurance
- Contingent insurance
- Due diligence